Sri Lanka Communication Profile 2012

Internet Market
Until 1999, there were only six Internet Service Providers in Sri Lanka. The number jumped quickly to 24 and has included a number of innovative operators. As this report indicates, Internet and other forms of data services have been starting to take off in the country, but coverage and accessibility was limited (user penetration was estimated by the ITU at around 6% by end-2008, probably reaching 8% by late 2009) and the sophistication of the services available remains low. The early moves to offer broadband Internet in the country have met with limited success and it seemed that it would be some time before there is a substantial broadband market. There were, however, some promising signs of growth in broadband services in 2007/2008 and into 2009. Of particular interest was the upsurge in activity in the wireless broadband segment of the market, although this had not yet translated into significant subscriber numbers.

Key Statistics, Telecom Market Overview & Forecasts
Sri Lanka's telecommunications sector has had to contend with a developing market in the difficult context of a nearly two-decade-long conflict between the government and separatist Tamil Tiger rebels. With the end of the war in May 2009 came the hope of an enduring peace and a general improvement in the country's social and economic well-being. This also found the telecom sector well positioned for vigorous growth.

Mobile Communications and Broadcasting
The highly competitive mobile market in Sri Lanka had been running with a healthy overall annual growth rate of 40-60% for the last few years. With mobile penetration still relatively low (especially compared with other more developed Asian markets), having reached 60% by early 2009, the strong growth seemed to be continuing. The market has undoubtedly benefited from its liberalisation and the competition that came with four operators seriously battling it out for market share. This is despite one of these - Dialog Telekom - still clinging to a large slice (48%) of the market. The number of mobile operators increased to five with Bharti Airtel Lanka launching a mobile service in early 2009.